Cash to make the paddles go round

Lausanne, Switzerland (GenevaLunch) - The three cantons that subsidize Compagnie Générale de Navigation (CGN) operations on Lake Geneva have advanced funding for the 2010 budget to the tune of some CHF7 million, reports Le Temps 4 November. CGN issued a terse press release in which it said only that its CEO Kurt Oesch had met the government ministers from Vaud, Geneva and Valais who are responsible for funding the boat transport company. (The French département of Haute Savoie contributes about CHF1m a year as well).

Le Temps reports that one of the solutions being mooted may include financial help from the Swiss government.

CGN’s finances have sparked rumours for several months, all denied by company officials. In September a leaked internal audit seen by Le Matin Dimanche revealed shortcomings, and called the company’s strategy into question. The company has been at pains to reduce costs to placate its main backers, while at the same time grappling with a three-pronged mandate: tourism, a regular transportation service, and maintenance of a fleet of boats, some of which are over 100 years old. The three tasks are often contradictory, and hamstring CGN.

It is likely that this business plan will be overhauled, reports Le Temps. The old paddle-steamers my be hived off to the Amis des bateaux à vapeur du Léman (ABVL), an association whose members have alreadycollected CHF14m for the refurbishment of some of the older boats. The lakeside communes served by CGN boats may have to stump up more money.

Background: “Lake Geneva boat operator CGN insists there is no crisis“, 14 September 2009, GenevaLunch

Link to other site: Le Temps

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